Correlation Between Agricultural Bank and Peoples Insurance
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By analyzing existing cross correlation between Agricultural Bank of and Peoples Insurance of, you can compare the effects of market volatilities on Agricultural Bank and Peoples Insurance and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Agricultural Bank with a short position of Peoples Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agricultural Bank and Peoples Insurance.
Diversification Opportunities for Agricultural Bank and Peoples Insurance
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Agricultural and Peoples is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Agricultural Bank of and Peoples Insurance of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peoples Insurance and Agricultural Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Agricultural Bank of are associated (or correlated) with Peoples Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peoples Insurance has no effect on the direction of Agricultural Bank i.e., Agricultural Bank and Peoples Insurance go up and down completely randomly.
Pair Corralation between Agricultural Bank and Peoples Insurance
Assuming the 90 days trading horizon Agricultural Bank of is expected to generate 0.75 times more return on investment than Peoples Insurance. However, Agricultural Bank of is 1.33 times less risky than Peoples Insurance. It trades about 0.1 of its potential returns per unit of risk. Peoples Insurance of is currently generating about 0.05 per unit of risk. If you would invest 270.00 in Agricultural Bank of on September 3, 2024 and sell it today you would earn a total of 211.00 from holding Agricultural Bank of or generate 78.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Agricultural Bank of vs. Peoples Insurance of
Performance |
| Timeline |
| Agricultural Bank |
| Peoples Insurance |
Agricultural Bank and Peoples Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Agricultural Bank and Peoples Insurance
The main advantage of trading using opposite Agricultural Bank and Peoples Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agricultural Bank position performs unexpectedly, Peoples Insurance can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Peoples Insurance will offset losses from the drop in Peoples Insurance's long position.| Agricultural Bank vs. Kunwu Jiuding Investment | Agricultural Bank vs. Harbin Hatou Investment | Agricultural Bank vs. Dazhong Transportation Group | Agricultural Bank vs. Metro Investment Development |
| Peoples Insurance vs. Bomin Electronics Co | Peoples Insurance vs. Leyard Optoelectronic | Peoples Insurance vs. Epoxy Base Electronic | Peoples Insurance vs. Renxin New Material |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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